Project detail - DARIALI ENERGY JSC

DARIALI ENERGY JSC

Who is our client

Dariali Energy JSC is a special purpose vehicle for constructing and operating Dariali HPP, a run-of-the-river hydroelectric power plant on the Tergi river in north-east Georgia. Installed capacity amounts to 108MW from three turbines. This project includes a dam (6 meters high and 36 meters wide), reservoir (0.25 square meters), sediment basin, powerhouse, headrace tunnel of 5.6km, and tailrace tunnel guiding water into Larsi, a completed 19MW HPP directly downstream. Dariali HPP will be connected to the national grid of Georgia through an existing 110kV transmission line running along the Tergi river next to the switchyard. Full Dariali HPP commissioning is expected in Q4 of 2015.

Funding objective

As a B-loan participant in an EBRD facility of US$80 mln, FMO will provide a US$30 mln senior loan to Dariali.

Why we fund this project

The long tenor of the DFI loan facility is not similarly available locally; this investment is therefore important for the construction of this project in Georgia. During construction, the project will provide employment to the area around the town of Stepantsminda. After its completion, Dariali HPP will help Georgia become less dependent on fossil fuels - a strategic goal of the country - and become a net exporter of energy. Dariali HPP will also offer energy for Georgian businesses and households at an attractive rate.